Square, the digital payments company that once thought bitcoin, the “number one” virtual currency, could shape the company’s future, has announced that it has no plans to buy more bitcoin.
Square has been betting on bitcoin since late last year, increasing its investment from $50 million last October to $170 million in February of this year. While the company invested $220 million in the virtual currency last quarter, it lost nearly $20 million investing in bitcoin, with purchases accounting for about 5% of its cash flow.
Square’s fiscal year 2021 first-quarter earnings report showed that, benefiting from bitcoin, the company reported first-quarter earnings of $5.06 billion, up 266 percent year-over-year, significantly better than market expectations, but all profits earned in bitcoin trading were low.
Square finance director Amrita Ahuja said the company does not have any further plans to buy bitcoin and has no plans to reassess the situation from a financial perspective.
In addition, Square noted that the company is, as always, customer-driven and will make further assessments at that time when it sees developments in Bitcoin products or crypto products in general.